On paper, the statutory provision for redundancy payments is straight forward and is based on an Employees’ age, length of service and weekly pay (currently at a capped rate of £538 per week).
Whether arising as a result of a business re-organisation, the closing down or relocation of a business, making redundancies often throw up a variety of challenges for Employers.
In dealing with a possible redundancy there is a duty on the Employer to consult with their Employees and to plan ahead. A failure to properly consult Employees can give rise to a claim in the Employment Tribunal, which might lead to an award of the Employer being obliged to pay up to three months’ salary.
The Attwaters Jameson Hill Employment Law team has a proven track record of successfully assisting Employers in dealing with the challenges of these principles and procedures, providing guidance as to best practice.
Selection for redundancy should be fair, and it may be based on a variety of criteria. The Employer needs to consider a variety of options including a reduction in working hours, structure, or relocation of staff, before making staff redundant. Redundancy situations may conclude with a Settlement Agreement.